China Securities Journal reported citing people that it didn’t identify that China plans to limit the mining of coal used in steel-making under regulations that the National Energy Administration will issue soon.
The newspaper reported citing the unidentified people that companies seeking government approval to explore for coal will face more stringent criteria, while mines will be required to boost production efficiency.
China is stepping up efforts to conserve natural resources including rare earth metals and bauxite by clamping down on illegal mining and curbing exports of the commodities. Domestic prices of coking coal, a raw material in steel making, have more than doubled in the past six years as demand increases in the world’s fastest growing major economy.
Mr Zhang Weifang a Shanghai based analyst at researcher Mysteel.com “Surging prices have spurred investors to pursue coal assets in Inner Mongolia and other regions. The new rules will probably aim to curb these activities rather than limit output that will cause prices to rise further.”
According to the McCloskey Group Ltd Prices of hard coking coal sold by Shanxi Coking Coal Group in China climbed to a record CNY 1,902 per tonne as of June 30. As of the end of last month, the prices were at CNY 1,871 per tonne.
(Sourced from Reuters)